Hard red winter wheat futures on the Kansas City Board of Trade closed lower on Wednesday on prospects for a large US and world wheat crop, traders said. The bellwether KCBT July wheat contract settled 6-1/4 cents lower at $8.57-3/4 per bushel, with back months down 10 cents to up 10 cents. Front-month May, which expires next week, fell 5 cents at $8.99.
Beneficial rain in the southern US Plains wheat belt pressured the market. Storms produced 0.25 to 1 inch of rain in southern and eastern portions of the belt in the past day, reaching into west Texas. More rain expected on Wednesday. Early reports from an annual Kansas wheat tour were promising. After scouting 190 fields on Tuesday, the tour estimated an average yield for those areas of 45.4 bushels per acre, up from 40 bu/acre in the same areas on last year's tour.
On Wednesday, scouts on one leg of the tour found better than expected wheat in western Kansas, although some areas needed moisture. In another reminder of the looming world wheat harvest, a USDA attache report put European Union wheat production at 139 million tonnes in 2008/2009, up 9.5 million.
Traders shrugged off support from USDA confirmation of sales of 300,000 tonnes of US hard red winter wheat to Iraq. Canada wheat stocks down 32 percent at end March, in line with trade expectations. Tunisia tendered to buy 101,000 tonnes of optional origin milling wheat, European traders said.
Jordan buys 100,000 T Ukrainian wheat in tender. Analysts expect USDA to slightly raise US old-crop wheat carryout; new-crop stocks to rebound. Trade estimates for USDA 2008/09 US wheat crop. Deliveries on KCBT May for Wednesday totalled eight contracts, with the Term Commodities house account taking all.